Macquarie Mexican REIT Announces Fourth Quarter 2012 Earnings Results

Largest REIT IPO ever on the Mexican Stock Exchange (Bolsa Mexicana
de Valores); raised gross proceeds of MX$12.8 billion
(approximately US$1 billion) from its global offering on December 19,
2012

Acquired the 2nd largest industrial portfolio in Mexico
with approximately 2.5 million square meters of gross leasable area,
for approximately MX$18.5 billion (US$1.4 billion)

Portfolio occupancy rate increased one percentage point from 91.1% at
the end of 3Q12 to 92.1% at 4Q12

Total revenues for 4Q12 were MX$156.1 million (approximately US$12.0
million); Net Operating Income of MX$152.0 million (approximately
US$11.7 million)

Funds From Operations of MX$121.7 million (approximately US$9.4
million) in 4Q12

February 26, 2013 08:22 AM Eastern Standard Time

MEXICO CITY--(BUSINESS WIRE)--Macquarie Mexican REIT (MMREIT) (BMV: FIBRAMQ), owner of the second
largest industrial real estate portfolio in Mexico, announced today its
results for the quarter ended December 31, 2012.

MMREIT’s real estate trust certificates (certificados bursátiles
fiduciarios inmobiliarios or“CBFIs”) commenced trading on
the Mexican Stock Exchange (Bolsa Mexicana de Valores) on
December 14, 2012 and MMREIT completed the acquisition of its initial
portfolio of 244 properties on December 19, 2012. The information
provided below corresponds to the operational period during the quarter
from December 19 to December 31, 2012 in which MMREIT operated as a
publicly traded trust, per regulatory requirements.

“We are pleased with MMREIT’s successful global offering,” said Nick
O’Neil, Director of Macquarie México Real Estate Management, S.A. de
C.V., the manager of MMREIT. “We view the strong response we received as
an indication of the attractiveness of the real estate opportunity in
Mexico to both local and international investors, as well as of the
strength of our initial portfolio. We believe MMREIT is well positioned
to capitalize on the trends in Mexico that have arisen from the changing
dynamics of the real estate market.”

Fourth Quarter 2012 Results

MMREIT’s total revenue in the abbreviated fourth quarter amounted to
MX$156.1 million (approximately US$12.0 million), including one-time
lease termination revenue of MX$98.3 million (approximately US$7.6
million) that was received during the period. Rental revenues totaled
MX$56.3 million (approximately US$4.3 million). Net operating income
(NOI) for the quarter was MX$152.0 million (approximately US$11.7
million). NOI per CBFI was MX$0.30 (approximately US$0.02), based on
511,856,000 total outstanding CBFIs as of December 31, 2012. Net loss
for the fourth quarter, during the operating period of December 19, 2012
to December 31, 2012, totaled MX$725.1 million, or MX$1.42 per CBFI,
based on 511,856,000 CBFIs as of December 31, 2012.

Funds from Operations (“FFO”) for the fourth quarter totaled MX$121.7
million (approximately US$9.4 million), or MX$0.24 (approximately
US$0.02) per CBFI.

The net loss for the quarter was principally due to transaction cost
charges related to MMREIT’s global offering as well as the initial
portfolio acquisition. All acquisition costs related to the initial
portfolio have been expensed in accordance with IFRS 3 Business
Combinations to the extent they are not directly related to the issuance
of equity or debt.

Total cash and cash equivalents amounted to MX$1.3 billion
(approximately US$101.8 million) as of December 31, 2012. Total
liabilities outstanding at the end of the fourth quarter totaled MX$11.0
billion (approximately US$848.9 million). As of December 31, 2012, the
value of MMREIT’s portfolio of properties was MX$18.5 billion
(approximately US$1.4 billion). Traded and other receivables, including
value added tax, totaled MX$2.6 billion (approximately US$198.5 million).

“We are pleased with the emerging trends in our portfolio in terms of
occupancy and leasing activity,” said Jaime Lara, CEO of MMREIT. “As we
look ahead to 2013, our primary focus will be on improving portfolio
occupancy and rental rates, as well as seeking opportunities to further
diversify.”

Property Operating Results and Leasing Activity

As of December 31, 2012, MMREIT owned 244 industrial properties located
in 21 cities across 15 states in Mexico, with approximately 2.5 million
square meters of gross leasable area. Total consolidated occupancy was
92.1% at the end of the fourth quarter, up one percentage point from
91.1% as of September 30, 2012, due to increased leasing activity in the
key markets of Chihuahua, Reynosa, Tijuana, Nuevo Laredo and Ciudad
Juarez. The portfolio’s weighted average remaining lease term (based on
Annualized Base Rent) as of September 30, 2012 was 3.4 years, and
increased to 3.5 years as of December 31, 2012 due to renewals and new
leases having longer durations. MMREIT also noted an increase in the
average lease terms primarily due to key tenants extending existing
leasing contracts.

MMREIT signed leases totaling approximately 160,000 square meters in the
fourth quarter of 2012. Rental rates on signed leases remained flat when
compared to the third quarter of 2012. MMREIT’s tenant retention rate
was 85% in the fourth quarter of 2012 based on leasable area.

“We continue to see a general recovery in many of the markets in which
MMREIT operates. Most notably, Ciudad Juarez, our most important market,
has experienced a resurgence of interest and investment, driving
occupancy rates up. While the rental rates in this market have not yet
fully recovered, we expect this to change over the coming months,” added
Mr. Lara.

Capital Markets Transactions

MMREIT was established as a real estate investment trust (fideicomiso
de inversíon en bienes raices) targeting industrial, office and
retail real estate in Mexico, with a primary focus on stabilized
income-producing properties. On December 19, 2012, MMREIT completed its
global offering of 511,856,000 CBFIs, which generated gross proceeds of
MX$12.8 billion (approximately US$1.0 billion). On January 17, 2013,
pursuant to the conditions established in the global offering, the
underwriters partially exercised the over-allotment option granted to
them and MMREIT issued an additional 55,310,126 CBFIs, generating an
additional MX$1.4 billion (approximately US$110 million) in gross
proceeds and increasing the number of total outstanding CBFIs to
567,166,126. Total gross proceeds from the global offering, including
from the partial exercise of the over-allotment option, amounted to
MX$14.2 billion (approximately US$1.1 billion).

First Holders Meeting

On January 28, 2013, MMREIT held the initial meeting of CBFI holders
where the independence of the independent members of the Technical
Committee, Dr. Alvaro de Garay, Mr. Juan Antonio Salazar and Mr. Luis
Alberto Aziz, was confirmed. Holders did not exercise their right to
appoint members of the Technical Committee at this time.

Establishment of Audit and Practices Committee

On February 5, 2013, MMREIT’s Audit and Practices Committee was formally
constituted, comprising the three independent members of the Technical
Committee, with Mr. Salazar acting as Chairman.

Repayment of VAT Facility

On February 13, 2013, MMREIT exercised its right to voluntarily prepay
its US$70 million short-term facility with Macquarie Bank Limited (MBL).
Considering the interest expense savings and the resulting reduction in
leverage, MMREIT decided to prepay its short-term facility with MBL
using available cash on hand after the completion of its global offering
and the partially exercised over-allotment option.

Webcast and Conference Call

MMREIT will host a webcast and conference call to discuss quarterly
results and current market conditions on Tuesday, February 26, 2013 at
7:30 a.m. CST / 8:30 a.m. EST. The conference call, which will also be
webcast, can be accessed online at www.macquarie.com/mmreit
or by dialing toll free +1 877-303-6152. Callers from outside the United
States may dial +1 678-809-1066. Please ask for the Macquarie Mexican
REIT Fourth Quarter 2012 earnings call.

An audio replay of the conference call will be available through March
1, 2013, by dialing +1 855-859-2056 or +1 404-537-3406 for callers
outside the US. The pass-code for the replay is 14621495. A webcast
archive of the conference call and a copy of fourth quarter financial
information will also be available on MMREIT’s website: www.macquarie.com/mmreit.

Macquarie Group (Macquarie) is a global provider of banking, financial,
advisory, investment and funds management services. Macquarie’s main
business focus is making returns by providing a diversified range of
services to clients. Macquarie acts on behalf of institutional,
corporate and retail clients and counterparties around the world.
Founded in 1969, Macquarie operates in more than 70 office locations in
28 countries. Macquarie employs approximately 13,500 people and has
assets under management of over US$353 billion (as of September 30,
2012).

Macquarie Infrastructure and Real Assets, a division of Macquarie, is a
leading global alternative asset manager specializing in investments
across infrastructure, real estate, agriculture and energy. Macquarie
Infrastructure and Real Assets manages 49 funds with US$101 billion of
assets under management across 25 countries (as of December 31, 2012).

Cautionary Note Regarding Forward-Looking Statements: This
release may contain forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. We caution you that
a number of important factors could cause actual results to differ
significantly from these forward-looking statements.

THIS RELEASE IS NOT AN OFFER FOR SALE OF SECURITIES IN THE UNITED
STATES, AND SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES
ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED.

Unaudited consolidated financial statements

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD
ENDED DECEMBER 31, 2012

CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS

2012

Note

$’000

Income

Property rental income

3(a)

57,787

Property expenses

(4,099)

Net property income

53,688

Other operating income and charges

3(b)

(278,125)

Other income

3(a)

99,911

Total operating expense net of property expenses

(124,526)

Expenses

Management fees

3(c)

(4,558)

Finance costs

3(d)

(21,350)

Transaction related expenses

3(e)

(569,002)

Other operating expenses

3(f)

(5,663)

Total expenses

(600,573)

Loss for the period

(725,099)

Other comprehensive income

Other comprehensive income for the period

-

Total comprehensive loss for the period

(725,099)

Earnings per CBFI

Basic earnings per CBFI

6

(1.42)

Diluted earnings per CBFI

6

(1.27)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31,
2012

CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS

2012

Note

$’000

Current assets

Cash and cash equivalents

7

1,324,884

Trade and other receivables

8

2,563,886

Total current assets

3,888,770

Non-current assets

Other assets

9

75,878

Investment properties

10

18,476,822

Total non-current assets

18,552,700

Total assets

22,441,470

Current liabilities

Trade and other payables

11

14,286

Interest bearing liabilities

13

886,794

Total current liabilities

901,080

Non-current liabilities

Other liabilities

12

465,706

Interest bearing liabilities

13

9,677,860

Total non-current liabilities

10,143,566

Total liabilities

11,044,646

Net assets

11,396,824

Equity

Contributed equity

14

12,121,923

Accumulated losses

15

(725,099)

Total equity

11,396,824

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED
DECEMBER 31, 2012

CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS

ContributedEquity

AccumulatedLosses

Total

Note

$’000

$’000

$’000

Initial contribution at November 14, 2012

50

-

50

Contributions of equity, net of issue costs

16,17

12,121,873

-

12,121,873

Total comprehensive loss for the period

-

(725,099)

(725,099)

Total equity at December 31, 2012

12,121,923

(725,099)

11,396,824

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED DECEMBER
31, 2012